Pearse Doherty (Donegal, Sinn Fein)
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57. To ask the Minister for Finance further to Parliamentary Question No. 287 of 8 May 2025, the estimated cost of extending each of the tax measures listed in 2026 over and above the projections provided in the Annual Progress Report; and if he will make a statement on the matter. [24829/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I note that the Deputy has confirmed that he is referring to the Annual Progress Report that was published by the Department of Finance on 6 May. I also note that his query is in relation to tax measures expiring in 2026.

As is standard practice, the Annual Progress Report (APR) fiscal projections do not reflect additional costs of tax policy measures above that which was provided for in the Budget 2025 projections, with the exception of the extension of the 9% VAT rate for gas and electricity, which I announced on 1st April. The estimated cost of this extension is €85 million which is incorporated in the APR projections.

Additionally, I am advised by Revenue, that due to unknown future behaviour, it is not possible to provide a cost of extending the relevant measures beyond 2026.

However, the cost of extending these measures for an additional year may be similar to the latest published cost (where available) on Revenue’s website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/cost/index.aspx

In addition, my Department publish a report on Tax Expenditure Evaluation each year, the latest report was published on Budget Day, and is available at: assets.gov.ie/static/documents/tax-expenditures-in-ireland-2024-report.pdf

The Deputy may be aware that last year my Department also published Tax Expenditures Evaluation – Updated Guidelines (available at: assets.gov.ie/static/documents/tax-expenditure-evaluation-updated-guidelines.pdf). These guidelines include specific guidance on ex post evaluation of existing tax measures.

As per these updated guidelines, priority in the first instance should be given to tax expenditures with an approaching sunset clause, such as the measures due to expire in 2026, due to the legal obligation for a review to be undertaken by the end of the sunset period.

Sections 3, 5, and 6 of the Guidelines may be of particular interest to the Deputy, as they outline the principles and key concepts involved in ex post evaluation, as well as outlining the Department’s proportionate approach to implementation and prioritisation of ex post evaluation.